CTA Trip Cancellation & Travel Insurance 2

Question 1

A traveler purchases a 'Cancel for Any Reason' (CFAR) upgrade. What percentage of prepaid, non-refundable costs is typically reimbursed under CFAR?

Accepted Answer

75%

Answer

CFAR coverage typically reimburses 75% of prepaid, non-refundable trip costs, not the full 100%.

Question 2

Which of the following is a common requirement to qualify for Cancel for Any Reason (CFAR) coverage?

Accepted Answer

Purchase the policy within 10–21 days of initial trip deposit

Answer

CFAR must typically be purchased within 10–21 days of the initial trip deposit to qualify.

Question 3

A client's travel insurance includes 'Interrupt for Any Reason' (IFAR) coverage. When does IFAR apply?

Accepted Answer

After a trip has already begun and the traveler cuts it short

Answer

IFAR allows a traveler to cut short an already-begun trip for any reason and receive partial reimbursement.

Question 4

What does 'primary coverage' mean in the context of travel insurance?

Accepted Answer

It pays claims first, regardless of other insurance the traveler holds

Answer

Primary coverage pays out first without requiring the traveler to file with other insurance policies beforehand.

Question 5

A traveler's cruise is cancelled by the cruise line due to a hurricane. Which coverage would most directly reimburse the traveler for this loss?

Accepted Answer

Trip cancellation due to weather/natural disaster

Answer

Trip cancellation due to weather or natural disaster is the coverage that applies when a supplier cancels due to a hurricane.

(CTA) Certified Travel Associate Practice Test